THE boom in city centre living in Liverpool will provide the city with an extra £3m in council tax this year.

THE boom in city centre living in Liverpool will provide the city with an extra #3m in council tax this year.

Up to 10,000 people living in exclusive city centre flats and apartments are now having a positive effect on what is known as the council tax base.

For years Liverpool has suffered from a declining population and a predominance of people living in cheaper housing, ranked in Bands A and B where people pay less.

But now that population decline has been stabilised and the growth in higher price city centre flats is bringing more people into higher-paying bands.

A council spokesman said: "We estimate we will get a boost of around #3m-4m from the fact there are more people living here and living in good-quality housing.

"Liverpool is more prosperous now and people can afford to buy better homes.

"Population wise we have stabilised and although we could not say it has gone up yet, we hope we will have half a million people by 2010."

The council tax base is basically the number of people paying council tax and the level or band they are paying at.

The Government estimates that an average council tax payer is in Band D, and calculates the amount it will give individual councils on that basis. Yet that discriminates against Liverpool which has those high numbers of Band A and B properties.

Council leader Mike Storey said: "As a city council, we cannot create jobs but we can create the right conditions for people to live, work and play in Liverpool.

"We are now starting to see the fruits of that work. City living is booming and we're seeing the filtering out of that to other parts.

"Traditionally, Liverpool has probably had more Band A and B proper-ties than any other city which costs us something like #20m-#30m a year in the Government settlement.

"But by regenerating the city, we are now starting to see an increase in the money coming in."

Labour leader Joe Anderson (left) welcomed the news but also struck a cautionary note on behalf of those trying to get on the property ladder.

He said: "It is important that we have halted the drift away from Liverpool and young, professional people are now wanting to live here.

"The city centre population will increase by something like 5,000-6,000 over the next few years which is great news for the city and for the finances of the city council.

"We need to make sure that extra money is not used frivolously but instead meets the requirements of all the citizens of the city.

"And we need to make sure there is quality, affordable social housing for people who have perhaps lived here for generations and who are struggling to get on the property ladder.

"We must not drive those people away."

Last week the city's ruling Liberal Democrats announced an intention to increase council tax only in line with inflation this year, but a final decision will not be made until March 9.